Analytics Powered Smarter Merchandising

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1 Analytics Powered Smarter Merchandising How Lee Jeans is Leveraging IBM WebSphere Commerce and Coremetrics Luis E Rodriguez WW Solutions Executive, Smarter Commerce, IBM Brian Tomz Sr. Director Product Strategy, Coremetrics, IBM Company Kris Aldridge Project Manager, VF Corporation - Lee Jeans 2011 IBM Corporation

2 IBM s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products isnot a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput orperformance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. 2

3 Agenda Trends Impacting Digital Marketing & Merchandising IBM Coremetrics data driven applications Powering Analytics Driven Merchandising IBM WebSphere Commerce & Coremetrics working in concert Smarter Lee Jeans Analytics driven merchandising decisions Q&A 3

4 Innovation and business value Innovating and aligning business models to drive value to the customer IBM s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND ENABLERS Market and customer mgmt Aligning sales, marketing and operations to engage with customers Operating and Organization Models Designing operations, supply chain and the organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service Supplier Integration & Management Supply Chain Optimization Logistics Management Payments and Settlements Customer Awareness Analytics Brand Experience Social Media Marketing Cross-channel Campaign Mgmt Digital Marketing Optimization Marketing Resource Mgmt Cross-channel Selling Distributed Order Management Customer Integration & Collaboration Fulfillment Store Solutions Payments & Settlements Delivery, Service, & Support Customer Self-Service Reverse Logistics Case Management Advanced Analytics Store analytics Purchase analytics Consumer loyalty Predictive and prescriptive Social Analytics Master data management Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) focused on agility, integration and automation to drive relevant business outcomes 4

5 Trends Impacting Digital Marketing & Merchandising IBM Coremetrics data driven applications 5

6 Trend: Marketer s Priority = Customer Retention Customer Retention 52% Customer Acquisition 38% Customer Profitability 29% Source: Forbes, Brining 20/20 Foresight to Marketing, June

7 Focus on retention requires tools that make marketing feel like a service 7 Targeting Display Ad Targeting 7

8 Lifecycle Analytics Customers at different lifecycle stages require different communications 8

9 Trend: Spend Shifting Online 56% Will increase online marketing budgets Branding Direct Mail Print/Broadcast Online Trend: And to Cheaper Online Mediums 54% Will increase social media spend Paid Search Social Media Display Retargeting Source: Forbes, Brining 20/20 Foresight to Marketing, June

10 Social Analytics Despite the investment, 84% of companies don t measure Social ROI 63% research via social networking 47% of the time they are influenced by what is read 10 83% of holiday shoppers influenced by reviews Consumer reviews are 12x more trusted than descriptions from mfg 500 million active, 175 million daily users A Facebook Like from a friend carries the same weight as 100 positive reviews from strangers 10

11 Trend: Quantifying multichannel influence Online Offline $5 Billion of in-store sales are influenced by our web site Every $1 spent on macys.com influences another $5.77 spent in-store. - Terry Lundgren Macys at Shop.org 11

12 Understanding online impact on offline will change your online media buying math Multichannel Analytics 12

13 Trend: Mobile & Digital Marketing Change In-Store Experiences Kiosks Mobile Apps Product Pamphlets QR Codes U.S. mobile commerce reaches $1.2 billion Global mobile commerce sales expected to reach $163 billion by 2015 Employee Suggestion Tablets & Digital Signage 13

14 Product Recommendations Product Recommendations across touch points Web Call Center Mobile In-Store Device Display 14

15 Powering Analytics Driven Merchandising IBM WebSphere Commerce & Coremetrics working in concert 15

16 Coremetrics for WebSphere Commerce IBM and Coremetrics Provide Tailored Best-in-Class Analytics for WebSphere Commerce Analytics solutions specifically designed for WebSphere Commerce Enhanced productivity as result of deep integration Jointly developed & tested technology Continuous enhancements Rapid implementation 16

17 Coremetrics WebSphere Commerce Integrations Since 2006 IBM and Coremetrics Have Been Delivering Value Through Out-of-the-Box Integrations WC V6 Integration Tag Library Integration WC V5.6 and V5.6.1 Integration Customer Segment Import WC Extended Sites Support Auto Tagging Tool WC Custom Reports Sales Center Reports Multi-currency Support Multi-language Support Enhanced E-Site Support WC v7 Support Web 2.0 Store Support Mobile Commerce Deep Coremetrics Intelligent Offer integration to WC Management Center Real-time Coremetrics IO info to WC Coremetrics IO icon in Mgmt Center Coremetrics IO delivered to WC espots Access to Coremetrics dashboards & reports from Mgmt Center Coremetrics impression tag for WC remote widgets Improved tagging Integrated store samples Enterprise Product Reports 17

18 Coremetrics for WebSphere Commerce Customer Benefits Single Sign-On authentication between applications Out of the box WebSphere Commerce specific analytics Auto-configured tag library to speed implementation & maintenance Intelligent Offer recommendations served through espots Export segment to WebSphere Commerce for personalized targeting 18

19 IBM Tag Library Coremetrics for WebSphere Commerce Shopping Cart Tag WebSphere Commerce DataBean 19

20 Easy Analysis for Business Users Same terminology and hierarchical structures Coremetrics for WebSphere Commerce IBM WebSphere Commerce Management Center 20

21 Industry Leading Targeting & Personalization One Click Segment Export to WebSphere Commerce I can define customer segment as: Visitors who have browsed jeans and have been referred from Facebook To serve them custom espot: I pass customer segment from Coremetrics to WSC for targeting 21

22 Dynamic Recommendations emarketing Spot Integration I can maximize cross-sell opportunities by delivering product recommendations through an espot, to further personalize shopping experience Display Intelligent Offer Recommendations emarketing Spot displays dynamic recommendations from Coremetrics Intelligent Offer 22

23 Access Coremetrics Analytics Reports from Management Center 23

24 Smarter Lee Jeans Analytics driven merchandising decisions Kris Aldridge ecommerce Project Manager VF Corporation (Lee) 24

25 VF Corporation Overview Lee Jeans Company Overview ecommerce Strategy Merchandising Challenges Solution: Smart Merchandiser Future Enhancements Agenda The Lee T-Shirt give away! 25

26 VF Corporation Overview VF is the world's largest apparel company $7.7 billion in annual revenue 30+ dynamic lifestyle brands 780+ retail locations Sell in 150+ countries 46K+ employees Headquartered in Greensboro, NC 26

27 VF Brands 27

28 Lee Jeans Company ecommerce Overview Lee Jeans has had an ecommercesite since They re-launched in April 2009 under WC platform Increased net sales Increased AOV Increased conversion rate We are a manufacturer We are complementary to wholesale, however aiming to provide excellent product choices, service and value to our consumers online ecommerce platform heavily utilizes IBM solutions WebSphere Commerce (ecommerce engine) Omnifind (Search) WebSphere Content Management (WCM) Coremetrics (Website Analytics) 28

29 ecommerce Strategy The VF success formula: Blending the art and science of apparel Our strategy is driven by Passion for our products Deep understanding of our consumers Data-driven insights Expert execution Leverage all the above points together to strengthen the bond between the brand and consumer 29

30 The Merchandising Challenge 30

31 Merchandising Challenge Information Scattered Everywhere Merchandiser How do we make sense of it all? 31

32 Merchandising Today Disjointed and Disconnected from Site Management Center Accelerator Excel/Catalog Import 32

33 Smarter Merchandising 33

34 Our Solution: Smart Merchandiser Single tool that combines the intelligence of web analytics and social media data with the ease of a graphic, intuitive userfriendly interface Designed for business users to view product analytics, ratings, conversion rates, stock status, social data, etc just by clicking on product images 34

35 Smart Merchandiser WYSIWYG 35

36 Immediate Visual Indicators Unpublished Color specific inventory issues No Inventory Available 36

37 Sequence Management Drag and Drop Functionality 37

38 Color Management Sequencing and Publishing 38

39 Item Management Features: 1 Dynamic Search (display changes as you type) 2 Sort Options 3 Items Per Page 4 Navigation 4 39

40 Sales Catalog Management Add/Remove from Master Catalog 40

41 Sales Catalog Management Add From List Entry 41

42 Sales Catalog Management Remove 42

43 Smart Merchandiser No Longer Disconnected 43

44 Informed Decision Merchandising Analytics (including Inventory) Pricing Strategy Social Date Based 44

45 Merchandising Overlay Analytics and Inventory Coremetrics Analytics Inventory 45

46 Merchandising Overlay Date Based Analytics 46

47 Pricing & Profitability Merchandising Overlay Pricing & Profitability Profitability Warnings 47

48 Facebook Merchandising Overlay Social Insights BazaarVoice Twitter 48

49 Smart Merchandiser Solution Benefits Streamline workflow for business users Ideal solution for resource constrained teams Improved merchandiser efficiency Assist in merchandising decisions Turn insights into action 49

50 Now its easy! Happy Merchandiser 50

51 Lee Smart Merchandiser Future Enhancements Competitive Data Pricing from other online retailers SEO (keywords, ) Category Sorting Automation (sales, inventory) Social Commerce Alerts & Recommendations Filters based on social activities (Likes, Twitter Hits, BZ Ratings) Trend detection (Facebook/ Twitter) Sentiment Analysis (Twitter) Sort Order Profiles 51

52 Copyright & Trademarks IBM Corporation All Rights Reserved. IBM, the IBM logo, and ibm.comare trademarks or registered trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at Copyright and trademark information at 52

53 Acknowledgements & Disclaimers: Availability. References in this presentation to IBM products, programs, orservices do not imply that they will be available in all countries in which IBM operates. The workshops, sessions and materials have been prepared by IBMor the session speakers and reflect their own views. They are provided for informational purposes only, and are neither intended to, nor shall have the effect of being, legal or other guidance or advice to any participant. While efforts were made to verifythe completeness and accuracy of the information contained in this presentation, it is provided AS-IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, thispresentation or any other materials. Nothing contained in this presentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Nothing contained in these materials is intended to, nor shall have the effect of,stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results. Copyright IBM Corporation All rights reserved. U.S. Government Users Restricted Rights -Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp. Please update paragraph below for the particular product or family brand trademarks you mention such as WebSphere, DB2, Maximo, Clearcase, Lotus, etc IBM, the IBM logo, ibm.com, [IBM Brand, if trademarked], and [IBM Product, if trademarked]are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at Copyright and trademark information at 53

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